Swiber's Q1 net profit doubles to $66m on sale of subsidiaries

SINGAPORE - Net profit more than doubled in the first quarter at Swiber Holdings as the group booked gains from the sale of its subsidiaries and a higher share of profits from associates and joint ventures.

The Singapore-listed offshore construction and services support provider said on Thursday that earnings jumped 106.4 per cent in the first three months of the year over the previous year to US$52.8 million (S$66.0 million).

This was despite a 35.6 per cent fall in revenue to U$199.5 million. Swiber said a significant portion of ongoing projects were recognised last year, while work has yet to start on recently-awarded contracts, thus creating a temporary lull in revenue.

Net profits were was boosted by a jump in operating income, which stemmed from a net gain of US$95.1 million from the disposal of its subsidiaries, Swiber said.

Its share of profits from associates and joint ventures also more than doubled to about US$10 million.

"We are pleased to see that the subsidiaries that we've nurtured, and relationships with associates and joint ventures that we've built-up over the years, have come to fruition," said Swiber's chief executive and president Francis Wong.

The group's earnings per share for the first quarter was 7.9 US cents, up from 3.3 US cents a year earlier.

Net asset value per share rose to 97.7 US cents as at the end of the first quarter, from 89.7 US cents as at the end of last year.